Airline Finance News - Asia / Pacific.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Sep 11, 2006

Air India, Indian Airlines 

Indian government is moving ahead rapidly with the merger of Air India and Indian Airlines. Indian media is reporting that consultant Accenture India, which has the brief to compile a feasibility report, is required to submit preliminary recommendations for the merger by Oct. 15. According to insiders at Indian, the tie-up should be complete by March 2008. The new company then would be the subject of an IPO. Sep 8, 2006

Philippine Airlines 

PAL posted a profit of $28.7 million in the fiscal year ended March 31, a 63% increase over the $17.6 million earned in the previous year and its best year since 1993. It reported its financial results in US dollars for the first time. Revenues rose 15% to $1.24 billion as "virtually all key performance indices...improved from year-ago levels." Expenses climbed 14% to $1.22 billion as the carrier confronted rising fuel prices by "zealously cutting costs and improving systems," including increased e-ticketing. Sep 7, 2006

Philippine Airlines

Philippine Airlines told stockholders last week that the carrier will continue to push into new markets and modernize its fleet, with evaluations underway for acquisition of five regional widebody aircraft and three long-haul aircraft in addition to the order for 20 A320 family aircraft that will begin delivery this month. Chairman Lucio Tan and President Jaime Bautista also said PAL will revamp its inflight product, combining its first and business classes into an upgraded business class featuring lie-flat seats and on-demand IFE. Targets for international expansion include China, where its Beijing service will increase to daily from four-times-weekly, and India. Sep 7, 2006

Qantas

Qantas yesterday blasted a draft report from Australia's Productivity Commission that said it is too soon to tell whether regulatory restrictions on airport pricing removed in 2002 should be reinstated. The report called for six more years to study the current "light-handed" system. Qantas believes the system in place gives airports too much leeway to set landing and terminal rent fees, especially in major markets. Executive GM-Associated Businesses Grant Fenn said it was "particularly concerning" that Qantas's request that binding arbitration solve pricing disputes was rejected. "This means that airports can continue to raise prices and restrict access whenever they feel like it and there is nothing that airlines or passengers can do about it," he complained. "The only people to benefit from the Productivity Commission's approach are shareholders of the airports." Sep 8, 2006